Brookfield Renewable Partners L.P. Research Report

## Summary

Stock market is basically nonlinear in nature and the research on stock market is one of the most important issues in recent years. People invest in stock market based on some prediction. For predict, the stock market prices people search such methods and tools which will increase their profits, while minimize their risks. Prediction plays a very important role in stock market business which is very complicated and challenging process. We evaluate Brookfield Renewable Partners L.P. prediction models with Supervised Machine Learning (ML) and Sign Test1,2,3,4 and conclude that the BEP.UN:TSX stock is predictable in the short/long term. According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Buy BEP.UN:TSX stock.

## Key Points

1. What is prediction in deep learning?
2. How do you know when a stock will go up or down?
3. What is the use of Markov decision process?

## BEP.UN:TSX Target Price Prediction Modeling Methodology

We consider Brookfield Renewable Partners L.P. Decision Process with Supervised Machine Learning (ML) where A is the set of discrete actions of BEP.UN:TSX stock holders, F is the set of discrete states, P : S × F × S → R is the transition probability distribution, R : S × F → R is the reaction function, and γ ∈ [0, 1] is a move factor for expectation.1,2,3,4

F(Sign Test)5,6,7= $\begin{array}{cccc}{p}_{a1}& {p}_{a2}& \dots & {p}_{1n}\\ & ⋮\\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & ⋮\\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & ⋮\\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Supervised Machine Learning (ML)) X S(n):→ (n+8 weeks) $\begin{array}{l}\int {e}^{x}\mathrm{rx}\end{array}$

n:Time series to forecast

p:Price signals of BEP.UN:TSX stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

For further technical information as per how our model work we invite you to visit the article below:

How do AC Investment Research machine learning (predictive) algorithms actually work?

## BEP.UN:TSX Stock Forecast (Buy or Sell) for (n+8 weeks)

Sample Set: Neural Network
Stock/Index: BEP.UN:TSX Brookfield Renewable Partners L.P.
Time series to forecast n: 04 Dec 2022 for (n+8 weeks)

According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Buy BEP.UN:TSX stock.

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Yellow to Green): *Technical Analysis%

## Adjusted IFRS* Prediction Methods for Brookfield Renewable Partners L.P.

1. If such a mismatch would be created or enlarged, the entity is required to present all changes in fair value (including the effects of changes in the credit risk of the liability) in profit or loss. If such a mismatch would not be created or enlarged, the entity is required to present the effects of changes in the liability's credit risk in other comprehensive income.
2. To make that determination, an entity must assess whether it expects that the effects of changes in the liability's credit risk will be offset in profit or loss by a change in the fair value of another financial instrument measured at fair value through profit or loss. Such an expectation must be based on an economic relationship between the characteristics of the liability and the characteristics of the other financial instrument.
3. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss. However, the entity may transfer the cumulative gain or loss within equity.
4. If, at the date of initial application, it is impracticable (as defined in IAS 8) for an entity to assess a modified time value of money element in accordance with paragraphs B4.1.9B–B4.1.9D on the basis of the facts and circumstances that existed at the initial recognition of the financial asset, an entity shall assess the contractual cash flow characteristics of that financial asset on the basis of the facts and circumstances that existed at the initial recognition of the financial asset without taking into account the requirements related to the modification of the time value of money element in paragraphs B4.1.9B–B4.1.9D. (See also paragraph 42R of IFRS 7.)

*International Financial Reporting Standards (IFRS) are a set of accounting rules for the financial statements of public companies that are intended to make them consistent, transparent, and easily comparable around the world.

## Conclusions

Brookfield Renewable Partners L.P. assigned short-term B1 & long-term B1 forecasted stock rating. We evaluate the prediction models Supervised Machine Learning (ML) with Sign Test1,2,3,4 and conclude that the BEP.UN:TSX stock is predictable in the short/long term. According to price forecasts for (n+8 weeks) period: The dominant strategy among neural network is to Buy BEP.UN:TSX stock.

### Financial State Forecast for BEP.UN:TSX Brookfield Renewable Partners L.P. Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B1B1
Operational Risk 8290
Market Risk6535
Technical Analysis4978
Fundamental Analysis3832
Risk Unsystematic5755

### Prediction Confidence Score

Trust metric by Neural Network: 89 out of 100 with 471 signals.

## References

1. Clements, M. P. D. F. Hendry (1997), "An empirical study of seasonal unit roots in forecasting," International Journal of Forecasting, 13, 341–355.
2. Dudik M, Erhan D, Langford J, Li L. 2014. Doubly robust policy evaluation and optimization. Stat. Sci. 29:485–511
3. White H. 1992. Artificial Neural Networks: Approximation and Learning Theory. Oxford, UK: Blackwell
4. R. Howard and J. Matheson. Risk sensitive Markov decision processes. Management Science, 18(7):356– 369, 1972
5. Matzkin RL. 1994. Restrictions of economic theory in nonparametric methods. In Handbook of Econometrics, Vol. 4, ed. R Engle, D McFadden, pp. 2523–58. Amsterdam: Elsevier
6. P. Milgrom and I. Segal. Envelope theorems for arbitrary choice sets. Econometrica, 70(2):583–601, 2002
7. Mullainathan S, Spiess J. 2017. Machine learning: an applied econometric approach. J. Econ. Perspect. 31:87–106
Frequently Asked QuestionsQ: What is the prediction methodology for BEP.UN:TSX stock?
A: BEP.UN:TSX stock prediction methodology: We evaluate the prediction models Supervised Machine Learning (ML) and Sign Test
Q: Is BEP.UN:TSX stock a buy or sell?
A: The dominant strategy among neural network is to Buy BEP.UN:TSX Stock.
Q: Is Brookfield Renewable Partners L.P. stock a good investment?
A: The consensus rating for Brookfield Renewable Partners L.P. is Buy and assigned short-term B1 & long-term B1 forecasted stock rating.
Q: What is the consensus rating of BEP.UN:TSX stock?
A: The consensus rating for BEP.UN:TSX is Buy.
Q: What is the prediction period for BEP.UN:TSX stock?
A: The prediction period for BEP.UN:TSX is (n+8 weeks)